Wednesday, the French luxury conglomerate Kering announced a gain in yearly profit despite a decline at its flagship brand Gucci.
In 2022, the net income of Kering, whose empire includes Yves Saint Laurent, Bottega Veneta, and Alexander McQueen, increased by 14% to $3.9 billion (3.6 billion euros).
Sales grew 15 percent to 20 billion euros.
“In 2022, each of our Houses generated record revenues and contributed to an increase in operating income. But not all of these good achievements met our aspirations and potential,” said firm chairman Francois-Henri Pinault in a statement.
Pinault stated, “We are convinced that we are pursuing the correct long-term strategy, despite the difficulties faced by some of our Houses, especially towards the end of the year.”
China, which still had Covid limitations for the majority of last year, negatively impacted Gucci’s fourth-quarter revenue by 11%.
In December, the second largest economy in the world, a crucial market for luxury brands, lifted its zero-Covid policy.
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Jean-Marc Duplaix, the group’s chief financial officer, stated, “The year 2022 clearly falls short of our expectations (for Gucci) and the brand’s potential.”
The November announcement of the resignation of renowned Italian fashion designer Alessandro Michele as creative director of Gucci “did not have a direct impact on sales,” according to Duplaix.
»Luxury powerhouse Kering says profit up despite Gucci slip«
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